STOCKBRIDGE, Georgia – George and Andrea Burnett founded Powerhouse Termite and Pest Control 21 years ago. The power couple has been married for 34 years. With around seven employees, your company serves more than 350 customers throughout the greater Atlanta area.
The business owners have won awards for their growth and improvement and are guided by their belief and optimism that they will one day become one of the top 100 pest control companies in the United States. But lately they have seen a drop in new business.
“They keep the service and still get it,” George said. “It’s not that we’re losing business, we’re just not gaining any new business right now.”
The biggest challenge facing the Burnetts is inflation, specifically paying for gas and products and building a skilled sales force that can attract new business.
“You have to pay more for everything,” Andrea said. “Customers pay more for everything else, so that’s fine. They cannot save because our suppliers are demanding more from us, so we have to respond to that.”
Brent Meyer, associate vice president and economist at the Federal Reserve Bank of Atlanta, said the Atlanta metro area economy is much hotter than the macro economy in the entire United States.
“A lot of this has to do with the net migration to Atlanta,” Meyer said. “Think of the Atlanta job market, I think it’s still very strong. Many new businesses are springing up in the area. Employment conditions are very good and maybe a little better than the general US economy.”
While all of the new neighbors are contributing to relatively high home prices, Meyer said the Fed’s rate hikes have cut inflation by about half in many other sectors.
“Past policies are beginning to affect the economy and are starting to dampen prices,” Meyer said. “Some of the pandemic-related drivers of price increases, notably supply chain constraints and labor restrictions, are starting to fade. We are seeing some early signs that inflation is starting to moderate.”
Meyer said the data suggested the economy will remain strong and resilient both in the Atlanta metro area and across the country, although some experts were forecasting a possible recession sometime next year due to slowing economic growth, credit concerns and bankruptcies at regional banks .
Meyer said it could be a few years before the real impact of rate hikes and other Fed policies trying to bring inflation down to the FOMC’s 2% target is felt.
In the meantime, the Burnetts are focused on keeping current business stable and hope new business picks up soon.
“The future is bright, the future is what you make of it,” said George. “I’m excited about the future.”
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